SAFC looks ahead as GlobeLink project scrapped


Freight body says state funds better off allocated elsewhere

SAFC looks ahead as GlobeLink project scrapped
Stephan Knoll

 

GlobeLink will remain a pipe dream after South Australian transport minister Stephan Knoll pulled the plug on the project, in a move welcomed by the state’s peak freight body.

The ambitious multimodal concept, originally proposed in 2017, included a dedicated freight airport at Monarto and a toll-road and rail freight bypass ending north of Adelaide.

A KPMG business case found GlobeLink was economically unviable, costing about $7 billion with limited projected benefits and low demand.

"The state government has accepted all recommendations in the KPMG report and will not be progressing the original GlobeLink proposal," Knoll says.

"The government is clearly disappointed with the results of the business case, but it's become clear that this particular proposal doesn't stack up.

"With rail volumes unlikely to increase sufficiently in the future, the benefits of a new rail corridor are very marginal.

"This means that the issue of double stacking rail freight will unlikely be an issue, as first predicted by other reports, as rail freight volumes are limited."

The South Australian Freight Council (SAFC), which had originally described the concept as unviable and against the state’s interest, welcomed the announcement and the prospect of other options being explored.

"The freight industry is both pleased and relieved Globelink will no longer go ahead," executive officer Evan Knapp says.


Look back on original reactions to the proposed concept, here


"We look forward to consultation on the new approach in due course"

"The original Globelink package was announced almost three years ago to the day, and would have done significant harm to the freight industry in SA.

"This in turn would have increased costs for our customers, in particular the state’s exporters."

Knapp says infrastructure dollars would be better allocated improving existing road maintenance and on other projects such as completing the North South Corridor.

 

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